DoD's $300M R&D contract to Alliant Techsystems Operations LLC awarded sole-source in 2003, expiring 2012

Contract Overview

Contract Amount: $300,093,642 ($300.1M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2003-06-19

End Date: 2012-06-30

Contract Duration: 3,299 days

Daily Burn Rate: $91.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE

Sector: R&D

Place of Performance

Location: WOODLAND HILLS, LOS ANGELES County, CALIFORNIA, 91367

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $300.1 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: Key points: 1. Contract awarded on a cost-plus-incentive fee basis, suggesting shared risk and reward between government and contractor. 2. The contract's sole-source nature raises questions about potential price inflation and limited market engagement. 3. A long duration of 3299 days (over 9 years) indicates a significant, ongoing research and development effort. 4. The contract's expiration in 2012 means current spending and performance data are not reflected. 5. Research and Development in Physical, Engineering, and Life Sciences is a critical but often complex area for oversight. 6. The contract was awarded by the Department of the Navy, a major component of the Department of Defense.

Value Assessment

Rating: questionable

Benchmarking value for this contract is challenging due to its sole-source nature and expiration in 2012. Without competitive bids or current market data, assessing whether the pricing was optimal is difficult. The cost-plus-incentive fee structure implies that costs were monitored, but the ultimate value for money depends on the successful R&D outcomes achieved, which are not detailed here. The significant dollar amount suggests substantial investment, but the lack of competition limits the ability to confirm fair and reasonable pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source can provide the required goods or services. The lack of competition means there was no opportunity for multiple vendors to bid, which can limit price discovery and potentially lead to higher costs for the government. The rationale for the sole-source award would need further investigation to understand if it was justified.

Taxpayer Impact: Sole-source awards can mean taxpayers may not have received the best possible price due to the absence of competitive pressure. This necessitates strong justification and oversight to ensure public funds are used efficiently.

Public Impact

The primary beneficiaries are likely the Department of Defense and its research arms, receiving advanced R&D capabilities. The contract supports research and development in physical, engineering, and life sciences, potentially leading to technological advancements. Geographic impact is primarily associated with the contractor's location in California, where the contract was awarded. Workforce implications include employment for scientists, engineers, and support staff at Alliant Techsystems Operations LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Contract expired in 2012, making current performance and value assessment impossible without updated data.
Cost-plus-incentive fee structure requires careful monitoring to ensure contractor efficiency and prevent cost overruns.

Positive Signals

Contract supported critical R&D in physical, engineering, and life sciences for the Department of Defense.
Long-term nature of the contract suggests a sustained investment in important technological areas.
Awarded to a known entity, Alliant Techsystems Operations LLC, potentially indicating a track record with the agency.

Sector Analysis

The contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS code 541710). This sector is characterized by innovation and often involves long-term projects with uncertain outcomes. Government spending in R&D is crucial for national security, technological advancement, and economic competitiveness. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts within the DoD or other federal agencies for similar scientific domains.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss=false, sb=false). As a sole-source award, it is unlikely that subcontracting opportunities for small businesses were mandated through a competitive process. Further review of the contract's specific terms and conditions would be needed to determine if any small business subcontracting goals were established or met.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Navy. As a sole-source award, particularly for R&D, robust oversight would be critical to monitor progress, control costs, and ensure the research objectives were being met effectively. Transparency would depend on the agency's reporting practices for sole-source R&D contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Programs
Navy Science and Technology Programs
Advanced Technology Development Contracts
Federal Research Grants and Contracts

Risk Flags

Sole-source award lacks transparency and competitive pricing.
Contract expired in 2012, making current relevance and performance assessment difficult.
Cost-plus contracts can be susceptible to cost overruns if not closely monitored.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $300.1 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ALLIANT TECHSYSTEMS OPERATIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $300.1 million.

What is the period of performance?

Start: 2003-06-19. End: 2012-06-30.

What was the specific research and development focus of this contract?

The contract's NAICS code (541710) indicates 'Research and Development in the Physical, Engineering, and Life Sciences.' While the broad category is defined, the specific projects undertaken under this $300 million contract are not detailed in the provided data. This could encompass a wide range of activities, from materials science and aerospace engineering to biotechnology and advanced computing, all aimed at enhancing the Department of Defense's capabilities. Further investigation into contract line item numbers (CLINs) or associated documentation would be necessary to pinpoint the exact R&D objectives.

What is the justification for the sole-source award of this contract?

The provided data states the contract was 'NOT COMPETED' (ct: NOT COMPETED), indicating a sole-source award. The specific justification for this sole-source determination is not included. Typically, sole-source awards are justified under specific circumstances, such as when only one vendor possesses the unique capabilities, technology, or intellectual property required, or in cases of urgent and compelling need. Without the official justification document (e.g., a Justification and Approval for Other Than Full and Open Competition), it is impossible to assess the validity of the sole-source decision and whether it truly served the government's best interest.

How did the cost-plus-incentive fee (CPIF) structure impact the contract's final cost?

A Cost-Plus-Incentive Fee (CPIF) contract shares the financial risk between the government and the contractor. The contractor is reimbursed for allowable costs plus a fee that is adjusted based on performance against pre-determined targets (e.g., cost, schedule, or technical performance). For this contract, the final cost would have depended on how effectively Alliant Techsystems Operations LLC managed its expenses and met the incentive criteria. If they exceeded targets (e.g., came in under budget), their fee would increase, and the government would benefit from cost savings. Conversely, if they underperformed, the fee would decrease. The total obligated amount of $300 million represents the ceiling, and the final expenditure could have been higher or lower depending on the incentive outcomes.

What were the key performance indicators (KPIs) or milestones for this contract?

The provided data does not specify the key performance indicators (KPIs) or milestones established for this contract. In a Cost-Plus-Incentive Fee (CPIF) R&D contract, such metrics are crucial for guiding the contractor's efforts and for the government to assess progress and determine fee adjustments. These KPIs would likely have been tied to research objectives, technological advancements, prototype development, or specific scientific breakthroughs. Without access to the contract's statement of work (SOW) or performance work statement (PWS), these critical details remain unknown.

What is the historical spending pattern for this specific contract or similar R&D efforts by the Navy?

The data shows a total obligated amount of $300,009,364.76 for this contract, awarded in 2003 and expiring in 2012. This represents an average annual spending of approximately $33.3 million over its 9-year duration. To understand historical spending patterns for similar R&D efforts, one would need to analyze other contracts awarded by the Department of the Navy or the DoD in the physical, engineering, and life sciences domain during that period. This would involve querying federal procurement databases for comparable NAICS codes and contract types to establish benchmarks and identify trends in investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE (V)

Contractor Details

Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)

Address: 21050 CALIFA ST, WOODLAND HILLS, CA, 32

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline